HONOLULU- P
resident Barack Obama did not forget his hometown roots Monday as he released a $3.73 trillion budget proposal for the upcoming federal fiscal year, which begins October 1.Included in the president’s spending blueprint is a $250 million request for Honolulu’s controversial $5.5 billion rail transit system.
“It's great news,” said Breene Harimoto, chairman of the Honolulu City Council’s Transportation Committee. “But again the concern is what's going to happen in Congress."
Although the president hopes to award Honolulu a quarter of billion dollars for rail transit, the final amount included in the 2012 budget will be hashed out in the republican controlled House and the democratically controlled Senate.
Still, the city has a powerful ally in Dan Inouye, the democratic chairman of the Senate Appropriations Committee and second longest serving senator in U.S. history.
“We've always had Sen. Inouye there helping with the funding issues and I think he's still in a very good position to do that,” said Harimoto.
In a written statement to Khon2 Sen. Inouye expressed gratitude that the president’s budget recognized the importance of Honolulu’s proposed rail project.
“It is encouraging that President Obama, a born and raised Honolulu man all too familiar with Oahu’s traffic woes, is dedicated to helping create jobs and lessen Hawaii’s dependence on imported oil by providing an affordable alternative to driving,” wrote Inouye.
“We have debated and planned this project for decades and the time to act is now.”
Inouye added he remains “committed” to directing federal funds to the project while also ensuring its “timely” completion.
The $250 million pledge by President Obama represents 16 percent of the $1.55 billion in federal funds the city hopes to secure for rail transit.
Federal Transit Administrator Peter Rogoff is expected to address how much overall funding the administration will recommend for the project during a conference call with reporters on Tuesday.
Rogoff is expected to repeat a pledge he made in February of last year when he said the Obama administration is committed to paying for more than a quarter of the project’s $5.5 billion price tag.
However with budget cutting republicans in control of the House some City Council members are dubious of any promises coming from the White House when it comes to funding for rail.
“Once we get the financials done I'll feel a lot better,” said Councilwoman Ann Kobayashi, “but I hate to just stick it to the (city) taxpayers once again.”
While the president’s budget proposal may represent a silver lining for city officials, the Hawaii state legislature is more like a dark cloud.
Senate President Shan Tsutsui has introduced a bill to borrow $200 million of rail surcharge tax collection to help balance the state’s projected budget deficit of $844 million.
Harimoto fears what lawmakers in Congress will think if the bill is passed by the legislature.
“I think the biggest concern is that it may signal to the U.S. government, the transportation agency, that the funding may not be as stable as it should be,” said the Council’s transportation chairman.
Tsutsui’s measure (SB 1426) would add two more years to the city’s .5 percent general excise tax surcharge. Instead of expiring at the end of 2022 the added rail tax would be extended until December 31, 2024. The Senate president’s bill also provides as much as $300 million in general obligation bonds to cover the amount loaned to the state.
Since the rail surcharge began in January of 2007 the city has collected $623.3 million. The amount does not include a ten percent administrative fee gobbled up by the state, which now totals $69.2 million.
Borrowing any of the money the city has collected so far for rail transit could prove problematic.
Two contracts totaling $677 million have already been awarded - $482 million to build the elevated rail system from East Kapolei to Pearl City and $195 million to construct a train and maintenance storage facility in Waipahu.
The city is scheduled to award two more major contracts in 2011 for the second phase of the project from Pearl City to Aloha Stadium. The two contracts are expected to include the construction cost of “core systems” such as train vehicles and the operating systems for the rail line.
When finished the heavy rail system will stretch from East Kapolei to Ala Moana.
A phone call Monday afternoon by Khon2 to Sen. Tsutsui’s office was not returned.
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